Suppose the representative agent has a utility function over consumption, c, and leisure, l, which takes the form: u(c, l) = ln(c) + 2Dl D is a constant greater than 1.

Suppose the consumer faces a tax rate, t, on her labor income (i. e. she pays t dollars on every dollar earned). Further, assume that we are in a one-period setting (so there is no borrowing) and the agent takes the real wage, w, as given.

a. Do these preferences admit diminishing marginal utility in consumption? On leisure?
b. Write the budget constraint.
c. Using the Lagrangian method, solve for the labor supply function. Putting price (w) on the y-axis, and quantity (optimal n) on the x-axis, graph it.
d. What happens to the labor supply in response to a tax rate increase? What is the intuition for this result (remember prices and preferences determine allocations)?
e. How does labor supply respond to an increase in D? Provide intuition.

Xyz corporation has provided the following data concerning manufacturing overhead for july: actual manufacturing overhead incurred $ 69,000 manufacturing overhead applied to work in process $ 79,000 the company's cost of goods sold was $243,000 prior to closing out its manufacturing overhead account. the company closes out its manufacturing overhead account to cost of goods sold. which of the following statements is true? multiple choice manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000

You are a manager at asda. you have been given the demand data for the past 10 weeks for swim rings for children. you decide to run multiple types of forecasting methods on the data to see which gives you the best forecast. if you were to use exponential smoothing with alpha =.8, what would be your forecast for week 22? (the forecast for week 21 was 1277.) week demand 12 1317 13 1307 14 1261 15 1258 16 1267 17 1256 18 1268 19 1277 20 1277 21 1297

You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400